Trump-Backed Spending Bill Could Tighten Access to Low-Income Tax Credit

A provision in the House-passed “One Big Beautiful Bill Act,” backed by former President Donald Trump, could impose new hurdles for Americans claiming the Earned Income Tax Credit (EITC), a key benefit for low-income workers.

The legislation, currently under review in the Senate, proposes a mandatory precertification process for each qualifying child starting in 2028. Under current rules, filers claim the EITC directly on their tax returns, including details on Schedule EIC.

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Supporters of the change argue it aims to reduce “duplicative and other erroneous claims,” according to the bill’s language. However, tax policy experts warn the measure may disproportionately burden eligible filers and delay tax refunds.

“You’re going to flood the IRS with all these [EITC] documents,” said Janet Holtzblatt, senior fellow at the Urban-Brookings Tax Policy Center. “It’s just not clear how they’re going to process all this information.”

Greg Leiserson of the Tax Law Center at New York University noted in May that similar precertification efforts during the George W. Bush administration led to lower claim rates among eligible taxpayers and were less cost-effective than existing enforcement methods.

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The EITC provides refundable tax relief, up to $8,046 for tax year 2025, for working families with up to three children. Roughly 23 million workers claimed the EITC for tax year 2022, but the IRS estimates about 20% of eligible filers miss out on the benefit.

The bill’s future remains uncertain. Under reconciliation rules, Senate Republicans need only a simple majority to advance the legislation.